Hickock, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at $40 each.
a. What is the new market value of the company? (Do not round intermediate calculations.)
New market value $
b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.)
Number of rights needed
c. What is the ex-rights price? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Ex-rights price $
d. What is the value of a right? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Value of a right